The “Profligate Idiots” In Europe: “They Have A German Pope And An Italian Central Banker”

Anyone needing a quick summary of the main tension lines in Europe as they currently stand can probably not do any better than the attached 3 minute explanation by Kyle Bass. And while he just participated in a far longer Q&A with BBC’s Hardtalk program, which we will bring to you shortly, the attached video explains more in 150 seconds than a full day of watching the financial funny channel from basic cable. In a nutshell: Europe is about to see trillions in debt written down (the only mathematical explanation which makes sense, as presented for the nth time earlier by Charles Hugh Smith), the “profligate idiot” spenders of Southern Europe are not going to be bailed out by Germany, which has decided it has had enough of the “Mexican standoff” within the Eurozone, and will not be held by the short hairs any longer. And as for the quote that captures the total and utter chaos in Europe: “they have a German pope and an Italian central banker.” Nuf said.

via Kyle Bass Best Summarizes The “Profligate Idiots” In Europe: “They Have A German Pope And An Italian Central Banker” | ZeroHedge.

His latest play is an asymmetric bet on Japan, based on demographics, interest rates, and ability to service debt. I happen to agree with Bass, that it is just a matter of time before the Yen blows up.

“Buying gold is just buying a put on the idiocy of the political cycle. … Capitalism without failure is like Christianity without Hell. You have to have atonement for ridiculous levels of spending both the US and Europe have gone through. The spending idiocy of the world is going to catch up to itself. And that’s where we are today.”

HERE IS THE FULL INTERVIEW … awesome!

http://www.wallstreetoasis.com/blog/kyle-bass-pawns-bbcs-hardtalk

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